Information that has recently been released by Western Union Business Solutions has shown that the confidence of small and medium-sized businesses in the UK who are involved in import or export has fallen. For the first time in a while, confidence has become negative.
Between March and May this year, the amount of confidence in this market has dropped from around 60 percent, to 50 percent. Much of this reduction in confidence came after the announcement by the government that the U.K.’s economy was officially once again in recession.
The managing director of the company which has gathered the information, Neil Graham has commented, “There was a rebound earlier in the year, but confidence has once again fallen after the news of the double-dip recession. Confidence in London has become particularly poor and this sets a very worrying tone for the economy. Small businesses are very concerned that the financial situation is going to remain bad for the near future.”
Being able to get credit is one of the many worries of small businesses and a recent survey has shown that over 80 percent of small businesses in the country have seen no improvement in their ability to access credit in recent months. Unlike some of the governments other projects, the guarantee scheme for loans to small businesses seems to be having very little effect on the number of companies being granted credit.
The study showed that around 20 percent of small businesses feel it is easier to get credit than it was a year ago. Mr Green continued by saying, “Businesses being unable to get enough credit is a major concern and it is something that is challenging businesses every day.
“The government have, unfortunately, not be able to bring a great little improvement of the credit situation for small businesses. Maintaining a positive cash flow is something that is very challenging for businesses right now, and without crediting available, this can be a very dangerous position to be in.”